India-NZ FTA: High-density orchards, CA storage apples likely to face import pressure

Srinagar, Dec 24: India’s decision to grant preferential market access to New Zealand apples under a Free Trade Agreement may still harm domestic growers, particularly in Kashmir, despite official assurances that imports are restricted to the counter-seasonal window.

Under the agreement, India will allow imports of up to 32,500 tonnes of New Zealand apples in the first year at a reduced customs duty of 25 percent, rising gradually to 45,000 tonnes by the sixth year.

The concession applies only between April and August—a period the government describes as off-season for Indian apples—with a minimum import price of $1.25 per kilogram to prevent cheap imports.

However, apple growers from Kashmir, which accounts for nearly 75 percent of India’s apple production, argue the timing could directly affect domestic supply. Large volumes of Kashmiri apples stored in Controlled Atmosphere facilities are typically released into markets from April onwards, coinciding with when imported apples would begin arriving.

“April to June is no longer a true off-season,” said Mohammad Ashraf Wani, president of Fruit Mandi Shopian. “CA storage has extended the market life of domestic apples, and imported apples during this period will inevitably compete with stored produce.”

Currently, at least 250,000 to 300,000 metric tonnes of apples are stored in various CA facilities across the Valley.

Industry representatives also point to the rise of high-density apple plantations in Kashmir, which mature earlier than traditional orchards. Harvesting of these varieties increasingly begins in July, overlapping with the latter part of the import window.

“The assumption that Kashmiri apples enter markets only after August is outdated,” Wani said. “High-density apples start arriving from July, and price pressure at that stage can hurt farmers already dealing with rising input costs.”

With more farmers adopting high-density cultivation, production has surged to around 100,000 metric tonnes annually.

India has sought to balance trade liberalisation with farm protection through safeguards, including import quotas and higher duties. Any shipments exceeding the annual quota will face 50 percent duty, aimed at discouraging large inflows.

Government officials maintain the measures are sufficient to prevent market disruption, saying the agreement offers Indian consumers a year-round supply without undermining domestic producers.

Trade analysts, however, caution that even limited imports can influence wholesale prices in a sensitive market. “Apples are an economically important crop in Kashmir, providing livelihoods to millions,” said a prominent trader.